Delegates opened the day's debate with money, debt and speculation. I suspect the discussion was actually more lively than Mr. Madison's terse notes indicate.

Colonel Mason wondered if the nation could ever pay its debts. We owed tremendous amounts to France as well as individuals. Ben Franklin loaned a few thousand pounds of real money to Congress early in the war and Elbridge Gerry had purchased government paper at deep discount.

Most of the States were stuck in severe recession despite the end of the war. They had internal problems of their own, one of which was a lack of hard money. What little they had, they refused to send in taxes to the Confederation government. Interest expense on loans was rapidly increasing. The little nation was caught in a downward spiral of debt, interest, unemployment and lack of job creation.

It does sound familiar. Funny thing is I was just thinking last week that the states ought to get together and start impounding and keeping all the revenue(in escrow of course) they could, until the federal government reduces itself by about half, and makes significant reductions in spending.LOL.

Thanks for posting this thread every day. It is great.

3 posted on 08/25/2011 9:20:00 AM PDT by greeneyes
(Moderation in defense of your country is NO virtue. Let Freedom Ring.)